👉 AMC biz: High operating leverage
👉 Fixed costs are relatively low in this biz
👉 MF Biz is fundamentally strong due to its high ROE, ROCE & FCF genearation
👉 High Dividend payout due to high FCF
👉 Both HDFC AMC & Nippon Life AMC generated massive >150% returns in past 1 yr Image
👉 India's MF Industry's consistent growth @21% CAGR (From 12.75 Lakh Crs to 27.26 lakh Crs in 2019)
👉 Equity MF and Debt MF grew at 4 year CAGR of 18% and 14% respectively
👉 Clear jump in equity funds and Hybrid funds of 62% to 152% in 2017

#mutualfunds ImageImage
👉 MF AUM continues to rise
👉 Total AUM as % of GDP is still very low at about 11% vs world average of about 62%

Factors driving growth
👉 Growing middle class with rising disposable income
👉 Large working age population with better job opportunities
👉 Low FD Interest rates Image
👉 Increasing popularity of SIPs as a mode of investing savings
👉 Digital platforms, Low penetration

AMCs in world developed markets trade anywhere between 1%-5% of their AUM


Source: PL Report ImageImage

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Nov 29, 2020
The Journey of Vini Costmetics
✍️1985: Darshan Patel joins his father's co Paras Pharmaceuticals
✍️1994: Launched Krack which was an overnight success
✍️1996-2000: Launched a range of products(D-Cold, Borosoft,Ring Guard,Itch Guard)
✍️2002: Launched Livon-IND's 1st hair detangler
✍️2005: Set Wet hairstyling gel is launched and later a deodrant under the same brand name
✍️2006: Patel exits Paras. He sold his 24% stake to Actis Capital for $43 Mn
✍️2007: Registered Vini Costmetics and spend the next couple of years doing consumer research
✍️2010: Vini Costmetics was launched; started selling pharma products; WhiteTone was launched; Paras Pharmaceuticasl was acquired by Reckitt Benckiser Group for INR 3260 Crs
✍️2011: Launched Fogg deodorants; Bay Capital came on board, investing 30 Crs
Read 5 tweets
Nov 28, 2020
Aurobindo CMP 868
The company is developing:
✍️14 Biosimilars (5 of these expected to launch by FY25 with a US$20 market size)
✍️8 inhalers (US market size is >$10 Bn)
✍️Pneumcoccal Conjugate Vaccine (US$6.2 bn global market size)
✍️3 depot injectables (US$3.3 bn market size)
Co also developing 50 Other Complex generics
✍️Peptides (US$14.5 Bn Mkt size-Global $2.5 bn size for 5 filed ANDAs and Global $12bn for 10 under development)
✍️Topicals (US$4 Bn Mkt size-26 products under development currently out of total 37 products identified for development)
✍️Transdermal patches (US$3 Bn Global Mkt size) : 8 products under development (Clinical trials to begin for the 1st product in FY21)
✍️Nasals (US$1.3 Bn Mkt size) : 1 approved + 4 under development (Filing will be done over the course of next 3 yrs)
Read 14 tweets
Nov 23, 2020
✍️IND's Renewable Energy sector is world's 4th most attractive RE Mkt
✍️Globally, Cost to generate Solar & Wind Energy dropped by 90% & 70% in past 10 yrs
✍️Costs almost at par with NG
✍️RE is estimated to comprise ~60% of IND’s installed power capacity by 2030 (~24% at present)
✍️Global Investments in RE: $282 Bn in 2019
✍️45% cming frm China, who aims to get 62% energy via RE in nxt 3 yrs
✍️By 2040, IND aims to generate ~49% of total Electricity frm RE
✍️FDI inflow in the Indian non-conventional “energy sector” stood at $9.22B in last 10 years
✍️More than $42B has been invested in IND’s “RE” sector since 2014
✍️Estimated to attract investment ~$80B in nxt 4 yrs
✍️The past 9 months have slowed the Solar Energy installations by 80% v/s 2019 due to Covid
✍️2020-Cumulative solar capacity is ~37 GW
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Sep 26, 2020
Valiant Organics CMP 2795
✍️A Specialty Chemical Manufacturing Company.
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✍️Fully integrated manufacturing facilities
✍️Revenue: Domestic 85% & Export 15%
(Agro 40%,Specialty 30%,Dyes+Pigments 20%,API 10%)
✍️Rev. share from API is likely to increase in coming yrs
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✍️Inorganic growth & organic capital expansion without much increase in Debt Equity
✍️Leveraging a de-risked biz model
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Apr 26, 2020
IndusInd Bank CMP 380
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✍ High exposure to telecom companies & NBFCs
✍ Exit of a long-time CEO
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✍ Stock corrected 68% in March
Journey from 2035 to 235
✍ Dec 2017 - RBI imposes INR 3 Crs penalty for under-reporting of FY16 NPAs

✍ Apr 2018 - Reports divergence in FY17 NPAs of INR 1350 Crs frm RBI's estimates

✍ Sep 2018 - Discloses exposure of INR 3000 Crs to IL&FS, a crisis-ridden NBFC
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✍ Jan 2020 - Posts disappointing Q3, provisions up by 72%, gross NPAs more than double YoY, asset quality worsens, Mr Sobti set to retire in Mar'20

✍ Feb 2020 - Moody's downgrades Outlook to Negative from Stable
Read 5 tweets
Apr 25, 2020
The API Industry
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✍️ India has highest no. of US FDA approved plants (665) outside of the US
✍️ India has 44% of global abbreviated new drug applications (ANDA)
✍️ India needs to proactively boost the API Industry
✍️ The Indian pharma industry is the world's 3rd largest in terms of vol
✍️ India's API industry is ranked the 3rd largest in the world
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✍️ Indian bulk drug industry has grown at CAGR of 8.6% over 2016-2020. It is further expeacted to grow at similar CAGR during 2020-2024
✍️ The import of APIs has risen at a CAGR of 8.3% from 2012-2019
✍️ Bulk drug import reached a value of INR ~249 billion in 2019

Read 15 tweets

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